SMNEUTRAL

SM Current Ratio Analysis

0.39x

Higher than 0% of Energy sector peers

Updated 96h ago·SEC filings & market data

Key Takeaway

SM’s current ratio of 0.39x means the company has only $0.39 in current assets (cash, receivables, inventory) for every $1.00 of current liabilities due within a year, indicating limited short-term liquidity.

Sector Performance

0th percentile

SM

0.39x

Sector Median

0.91x

Sector Avg

1.00x

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Deep Analysis

SM’s current ratio of 0.39x means the company has only $0.39 in current assets (cash, receivables, inventory) for every $1.00 of current liabilities due within a year, indicating limited short-term liquidity.

This is well below the Energy sector median of 0.90x and places SM at the 0th percentile among sector peers, making it the weakest liquidity position in its peer group. The year-over-year and quarter-over-quarter changes are both N/A, and no trend data is available for the last eight quarters, so the direction of the metric cannot be assessed. The combination of an extremely low current ratio with no trend history signals a clear liquidity risk, but the absence of changes makes it impossible to know whether the situation is stable or deteriorating. This metric contradicts the overall NEUTRAL verdict, as the severe liquidity weakness typically points to a bearish concern rather than a balanced outlook.

Frequently Asked Questions

What does the Current Ratio tell investors about SM?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does SM's Current Ratio compare to its sector?

SM's Current Ratio of 0.39x compares to a Energy sector median of 0.91x, placing it in the 0th percentile.

Who are SM's closest peers by Current Ratio?

The closest Energy peers by Current Ratio include: PXD (0.90x), EPD (0.91x), APA (0.92x), CNQ (0.95x), ENB (0.81x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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SM

0.39x

Sector Median

0.91x

Sector Avg

1.00x

How SM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.